Manageable Bank Foreclosure Homes Make Texas a Buyer’s Market

by Peter Vernon on States

Economists and local realtors agree that now is the right time to buy a property in Texas to take advantage of its buyer’s market. The stabilizing number of bank foreclosure homes in Texas and the fair performance of the housing market have made the state an ideal buyer’s market.

Texas’ bank foreclosure homes rate for the first few months of this year declined by 14 percent from a year ago, a sharp contrast to the 32 percent gain nationwide.

Texas A&M University’s Real Estate Center’s research economist Jim Gaines said that the housing market in Texas has been doing fairly well compared to other housing markets across the country.

According to Gaines, Texas is being compared to big and high-growth states such as Illinois, California, New York and Florida. He said that Texas’ housing market is in a better shape than those in the other states because there was no major home price increases for the past five years now.

Additionally, Gaines explained that recession has a modest impact on Texas and the state had been creating jobs recently which stabilize the housing market. He also pointed out that Texas has refrained from overbuilding and there is no excess of housing inventory that could push down home values.

Furthermore, Gaines said that buying a land in Texas is relatively easy, including subdividing and building homes. He said that now is a very good time to purchase existing and bank foreclosure homes. However, he advised potential homebuyers to purchase houses they plan to live in for at least five years.

He also said that properties in the state are more affordable and the mortgage and interest rates have fallen below 6 percent.

On the other hand, Gaines noted that lending institutions have become stricter in their qualifications for loan recipients since the onset of the recession. He admitted that selling a property in Texas is much easier than buying one, but still, the housing market in the state is the best to buy into.

Meanwhile, first-time homebuyers can apply and qualify for the federal government’s $8,000 tax credit for those who have not owned a house since 2006.

Buyers who are eligible for the tax credit can buy any kind of houses, existing, new or bank foreclosure homes. To qualify for the federal tax credit, home buying and closing must be completed this year.